Head of Equity Strategy
Summary: The lessons from 2008 were that mean-reversion strategies work well during high volatility environments and with strong risk-on in Europe today we are providing a list of the worst decliners in the US equity market on a risk-adjusted basis. These stocks will most likely be in focus when markets open in the US.
As we stated a couple of days mean-reversion effects are strong during high volatility. Yesterday's massive sell-off means that there are opportunities on the long today although we warn that it comes with high risk due to current market environment. The table below is an inspirational list of the stocks that were down the most on a risk-adjusted basis across the different sectors.
Below is a list with the three US companies within each sector with the largest decline in asset price, relative to the usual fluctuations in the asset price. With this measure, assets which typically have a stable price will get a higher score if their stock price falls drastically - compared to equities with large fluctuations in the price on a daily basis.
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
A political switch in China towards less tough control of its people and companies may kick things back into gear.
Redmond Wong,
Market Strategist
While the economic situation in Europe may not be as bad as feared, there's still a plethora of things to fix.
Chris Dembik,
Head of Macroeconomic Research
As the world turns increasingly bipolar, equity markets face harsh times as they transition into the new reality.
Peter Garnry,
Head of Equity Strategy
New alliances and collaborations outside of China may lead to prosperous times in Asia.
Charu Chanana,
Market Strategist
For years, it was thought that the balanced portfolio was a thing of the past. But recent developments may have changed that.
Peter Siks,
Investment Coach
Following a dramatic and volatile 2022 with good returns, a lot of this year's commodity performance may be driven by Chinese politics.
Ole S. Hansen,
Head of Commodity Strategy
2023 could be a tough year for currencies but EUR and JPY may have some upside.
John J. Hardy,
Head of FX Strategy
The commodity-heavy Australian market may have a good start to 2023, as the Chinese focus on growth signals demand for Aussie resources.
Jessica Amir,
Market Strategist
From a near-perfect environment for speculative assets before 2022 to the opposite, crypto faces fundamental challenges.
Mads Eberhardt,
Cryptocurrency Analyst
